Financial Results for 2015

Posted April 21, 2016 by Werner

Having prepared the annual accounts for g10code GmbH, the legal
entity employing some of the GnuPG hackers, I can now share a financial
report. Please read on if you are interested in how well the donation
campaign last year worked and how we spend your money.

Balance Sheet as of 2015-12-31

Let us start by looking at the balance sheet, which describes
our financial status. The following table shows the actual
balance sheet with a few accounts pooled up. Note that for
display purposes all values have been rounded to a full Euro, and
thus there are minor mismatches in the Sums.

Asset

(2014)

Liability

(2014)

Tangible assets

3880

(791)

Stock of goods

0

(122)

Cash balance

360

(469)

Bank balance KSD

207453

(34522)

PayPal and others balance

3842

(711)

Accounts receivable

4774

(0)

Accounts receivable other

497

(18408)

Common capital stock

25000

(25000)

Loss carried forward

0

(23019)

Profit carried forward

11338

(0)

Net profit

115350

(34357)

Shareholder loans

0

(10000)

Accounts payable

0

(3510)

Accounts payable other

27974

(0)

GnuPG development fund

72

(72)

Provision for taxes

41070

(5103)

Sums

220804

(78042)

(220804)

(78042)

The Bank balance KSD is the money that we had at the end of the year
in our accounts at the local savings bank. The PayPal row gives
the amount of money in the PayPal account and in a Gandi prepaid
account. Accounts receivable are mostly outstanding demands
from the Linux Foundation for work done in December.

From the Common capital stock of 25000 Euro 50% are held by
Walter Koch and 50% by Werner Koch, the owners of g10code. The
Net profit gained in 2014 was back then used to make up for the
Loss carried forward in 2014 and the remaining 11000 Euro are
set as Profit carried forward to 2015.

The major part of the Accounts payable other is due to my profit
sharing bonus. The GnuPG development fund is the rest of a
campaign which collected prize money for the GnuPG logo.

Profit and Loss from 2015-01-01 to 2015-12-31

Now let us see how much money we earned and how we spent it. The
following table shows the actual profit and loss sheet with a few
accounts pooled up. As above, the values have again been rounded
to the nearest Euro.

Debit

(2014)

Credit

(2014)

Revenues

57251

(80435)

Revenues from donations

283538

(0)

Revenues other

218

(163)

Salaries

108719

(31800)

Social insurance

18060

(0)

Contractors

33165

(0)

Write-offs

1532

(1656)

Connectivity and hosting

2012

(2874)

Rents

2681

(2653)

Interest expenses

550

(0)

Travel expenses

3499

(1014)

Other expenses

5169

(6244)

Donations

5100

(1)

Taxes

45171

(0)

Net profit

115350

(34357)

Sums

341007

(80597)

341007

(80597)

The Revenues are mainly due to funding from the Linux Foundation
for 60,000 USD (54,000 EUR). The Revenues from donations are
mainly made up of 100,000 USD from Stripe and Facebook (89,000
EUR), 113,000 EUR received via PayPal, and 80,000 EUR via Stripe
(credit cards). Note that in 2014 we posted all donations to the
Revenues account and not to a separate donations account.

As with almost all software companies, the majority of expenses
are staff costs (we've hired three programmers). Not counting
taxes, which are due to the annual profit, we have total costs of
180,000 EUR with 160,000 spent on Salaries, Social insurance,
and Contractors. My share is 47,400 EUR regular salary of which
I need to pay social insurances myself plus a profit sharing bonus
of 25000 EUR. That bonus is exceptionally high due to the huge
net profit that we made in 2015; it is very unlikely that a bonus
will be due this or next year.

The Rents are for the room used as an office in my house. The
Interest was paid for a loan that I gave to g10code in 2012 and
which was redeemed in 2015. Other expenses sums up money spent
for magazines, power, office supplies, advertising, conference
fees, legal costs, etc.

Because g10code GmbH is still not tax exempted we will need to
pay about 45,000 Taxes in 2015 on the 115,000 Euro of Net
profit. Due to the net loss that we expect for 2016, a tax refund can
be expected in 2017.

Planning 2016 and 2017

Along with the paid projects we are currently working on, the two
large donations that we are expecting (from Facebook and Stripe),
the Linux Foundation grant, and a small stream of individual
donations, g10code will be able to operate with its current staff
until the end of 2017. Obviously, we need a longer term plan.
Things are a bit delayed, because the original plan to turn
g10code into a charitable company did not worked out and we need
to look into other options before starting a new campaign.